
Economy to grow at 7% in FY23 despite challenges; inflation to moderate: FinMin
India's growth momentum gathered in Q3 to be sustained in Q4, as reflected in high-frequency indicators, says the finance ministry.
India's growth momentum gathered in Q3 to be sustained in Q4, as reflected in high-frequency indicators, says the finance ministry.
While cereals inflation is on an increasing trend for the past two years, the recent increase is "perplexing", says the latest SBI Research note
Urban inflation rose to 6.1% in February from 6% in January while rural inflation declined to 6.72% in February from 6.85% in January.
Notwithstanding the increase in CPI inflation, how the CPI is measured by CSO is also a worrying phenomenon, says the SBI Research report
Food inflation, measured by the Consumer Food Price Index, rose to 5.94% in January.
The GDP growth for Q1 of FY24 has been projected at 7.8%, for Q2 at 66.2%, Q3 at 6% and Q4 at 5.8%.
The RBI has projected the headline inflation in the country to remain at 6.8% in FY23, which is outside its target range of 6%.
CPI-based headline inflation falls to a one-year low; remains below the RBI’s upper threshold of 6% for the 2nd month in a row.
Retail inflation falls within the RBI’s tolerance threshold of 4% (+/-2%) for the first time in 2022.
CPI inflation is expected to remain above the upper threshold of 6% in Q3 and Q4 of this fiscal, while it is likely to moderate in the first half of FY24.